A lease is a contract done by the lessor, the owner of a property, and the lessee, the one who will rent the property within a specific time duration. The lessee will regularly pay an amount for a number of days or months to the lessor until the end of their agreement.
A Vehicle Lease Agreement Form states the limitations of the distance the lessee may drive depending on what type of vehicle he is renting. Fees and sanctions may apply if the terms are not met.
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Importance of Vehicle Lease Agreements Forms
In this agreement form, the termination fee and the limitation set by the lessor are specified and should have emphasis. The mileage allowance of the user is one of the basis of the lease payment. This means that the lower the mileage allowance, the lower the amount is to be paid by the lessee. This makes the Lease Agreement Form significant since it will serve as a physical document and evidence of the lessee for the terms and conditions made by the lessor.
Quick Tips in Making a Vehicle Lease Agreement Form
- Be practical with the amount. Not all vehicles have the same characteristics, so be sure to name a price that is reasonable enough with the quality of the vehicle you have. You may also base your price tag off the amount you paid in buying your vehicle years ago.
- Include the insurance. When a vehicle often fails while it hits the road, the lessee will be obligated to pay for the mechanic. Be generous to your customer. As long as he did not violate the terms and conditions, grant him a discounted payment for the vehicle.
- Keep track of the miles. If you know your vehicle’s limitations, include it in the agreement so that the lessee will also be aware that the vehicle only runs a few miles an hour.
- Time duration. A year would be enough for a lease. Note the day the agreement started and the end date.
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Vital Parts of Vehicle Leasing Agreement Forms
Vehicle Leasing Agreement Forms vary differently depending on what the lessor agrees to put in the form. Here are the typical parts of an agreement form:
- Lessor and lessee’s details. This should be written at the top of the agreement to identify and define who the two parties are.
- Type of vehicle. The characteristics of a vehicle, from its wheels to its engine, should be stated.
- Lease dates. The time duration of the lease should be exact and specified. This may include the specific time and date of the beginning and end of the lease.
- Amount to pay. This should include the full amount of what the lessee needs to pay during his time-frame in using the vehicle.
- Terms and Conditions. This is where the limitations of the lessee are decided by the lessor.
- Signatures. Affixed signatures of the lessee and the lessor should be at the bottom part of the contract, for the sake of legalities.
A Vehicle Purchase Agreement may be misused as a leasing form as a seller might end up seeking another party for a buyer. But when it comes to purpose, the Vehicle Purchase Agreement focuses on the rights of the buyer. The vehicle will no longer be a property of the seller whenever the buyer has fully paid the price.
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